The rise of Financial Technology (FinTech) in the Philippines has facilitated easier access to credit. However, it has also birthed a predatory ecosystem of Online Lending Applications (OLAs) that utilize "debt-shaming" and harassment to enforce collections. These actions are not merely unethical; they are illegal under Philippine law.
I. Legal Basis for Complaints
Harassment by OLAs typically violates several key laws and regulations:
- SEC Memorandum Circular No. 18 (Series of 2019): Specifically prohibits unfair debt collection practices, including the use of threats, profane language, disclosure of debt information to third parties, and contacting persons in the borrower's contact list without consent.
- Republic Act No. 10173 (Data Privacy Act of 2012): Protects the personal data of borrowers. Unauthorized access to contact lists and the broadcasting of private information constitute major violations.
- Revised Penal Code & Cybercrime Prevention Act (RA 10175): Actions such as grave threats, coercion, and online libel fall under these statutes.
- The Truth in Lending Act (RA 3765): Requires full disclosure of interest rates and fees; many predatory OLAs fail to comply with these transparency requirements.
II. Where to File Complaints
Depending on the nature of the harassment, victims should escalate their concerns to the following government agencies:
1. Securities and Exchange Commission (SEC)
The SEC is the primary regulator of lending and financing companies. The Corporate Governance and Finance Department (CGFD) handles violations of debt collection guidelines.
- Focus: Unfair debt collection practices, unregistered lending apps, and violations of disclosure requirements.
- Action: You may file a formal complaint via the SEC's online portal or email their Enforcement and Investor Protection Department (EIPD).
2. National Privacy Commission (NPC)
If the OLA accessed your contacts, posted your photos on social media, or messaged your friends/family without your explicit consent for that specific purpose, it is a data privacy violation.
- Focus: Unauthorized processing of personal data and "debt-shaming" via social media.
- Action: Use the NPC’s Complaints and Investigation Division. Ensure you have preserved digital evidence (screenshots).
3. Bangko Sentral ng Pilipinas (BSP)
While the SEC handles most OLAs, some lending platforms are operated by banks or quasi-banks under BSP supervision.
- Focus: Conduct of BSP-supervised financial institutions.
- Action: Reach out to the BSP Consumer Protection and Market Conduct Office (CPMCO).
4. PNP Anti-Cybercrime Group (PNP-ACG) or NBI Cybercrime Division
If the harassment involves death threats, hacking, or severe cyber-libel, it becomes a criminal matter.
- Focus: Criminal acts involving digital platforms.
- Action: File a "walk-in" complaint at their respective offices to provide a sworn statement.
III. Essential Evidence to Gather
To ensure a complaint is acted upon, the following documentation is necessary:
| Type of Evidence | Description |
|---|---|
| Screenshots | Messages containing threats, profanity, or debt-shaming. |
| Call Logs/Recordings | History of repetitive or untimely calls (e.g., calls at 3:00 AM). |
| Social Media Links | URLs of posts where you or your contacts were publicly shamed. |
| Loan Contract | Digital copies of the terms and conditions and the disclosure statement. |
| Proof of Payment | Receipts or transaction history if the OLA is claiming unpaid balances inaccurately. |
IV. Summary of Prohibited Acts
Under SEC MC No. 18, lending companies are strictly prohibited from:
- Using or threatening to use physical violence to harm the person, reputation, or property of the borrower.
- Using threats to take any action that cannot legally be taken.
- Using obscene or profane language.
- Disclosing or threatening to disclose the borrower's name and other personal information as a "delinquent" to the public.
- Contacting the borrower’s contacts without consent, or contacting them more than once regarding a borrower's debt.
- Contacting the borrower between 10:00 PM and 6:00 AM, unless the borrower gave express consent to be contacted during those hours.
V. Procedural Steps for Victims
- Demand a Cease and Desist: Inform the OLA agent in writing (via email/text) that their actions violate SEC and NPC regulations and that you will file a formal complaint.
- Secure Your Accounts: Change privacy settings on social media to prevent "tagging" and limit who can see your friend list.
- File the Complaint: Submit the gathered evidence to the SEC or NPC.
- Avoid "Loan-to-Pay-Loan" Traps: Do not take out new loans from similar apps to pay off the harassing OLA; this exacerbates the cycle of debt.